Escrow & Title
What is a release clause in a Nevada blanket mortgage?
AA clause allowing the borrower to be released from personal liability
BA clause allowing individual parcels to be released from the blanket mortgage lien when a specified payment is made, enabling developers to sell individual lots✓ Correct
CA clause releasing the lender from the obligation to fund future draws
DA clause releasing the title company from liability
Explanation
A partial release clause in a blanket mortgage allows the borrower to have individual parcels released from the lien by paying a specified amount toward the loan. This allows Nevada developers to sell individual lots or units as they are completed without paying off the entire loan.
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